HSBC Bank Malta yesterday dispelled rumours that the HSBC Group’s Maltese operations could possibly be put up for sale.
Since the publication this weekend of an article in the UK’s Sunday Telegraph, rumours have swept through the international investment community that the HSBC Group could be considering off-loading a sizeable portion of its operations in developed or underperforming countries, including its Maltese holdings.
Commenting on the article yesterday, HSBC Bank Malta chief executive officer Shaun Wallis observed, “Our Malta business is very much part of the HSBC Group and one we intend to grow.
“I trust this dispels any speculative thoughts about HSBC’s future in Malta as reported in one of the UK Sunday papers.”
Moreover, the bank pointed out how at last Friday’s HSBC Group global investor relations event, group chairman Stephen Green cited Malta as “an example of a market where HSBC has scale and competitive advantage,” as he put it, “where we have a right to win.”
The article in question, published on Sunday, had cited unnamed analysts as believing HSBC’s businesses in Malta, Canada, Australia and Bermuda, as well as the bank’s regional banking operations in the United States, could be put up for sale.
The move, according to the Sunday Telegraph, stems from a new group drive aimed at diverting its focus from developed to emerging markets, from where it intends to derive 60 per cent of its earnings.
The article also claimed any of the bank’s businesses delivering returns on capital below the group’s 16 per cent average, would be put under review and that while no decisions have been taken as yet, a number of HSBC’s businesses in developed countries, such as Malta, could be put up for sale.
Remarks from Mr Green and Mr Wallis, however, clearly dispel this line of thought.
The article also claims HSBC’s French personal financial services and small business banking operations are up for sale at an estimated value of GBP2 billion.
These moves, and others, are thought to have stemmed from pressure applied by HSBC investor Knight Vinke Asset Management, which has criticised the group’s pay structures and lack of focus among other shortcomings.